After growing slowly and erratically for some decades after independence, Ghana's economy has performed much better during the past decade or so, helped by political stability and higher rates of investment. However, sustainable growth requires not only high volumes of investment, but efficient and productive investment. Accordingly, the research reported herein concerns a detailed study of investment in Ghana, focussing both on the general policy environment and also on the experience of two specific industries, namely food processing and timber products. Firms in four regions were interviewed, and significant barriers to efficient investment were identified. Formal rules and laws needed for investment were mostly in place, but their implementation needed better resourcing and firms highlighted problems of local political and kinship influences, poor infrastructure and high compliance costs as factors making investment more costly.
Discussion Paper Series, Research Programme Consortium for Improving Institutions for Pro-Poor Growth, Manchester, UK, No. 46, 18 pp.
Investment Behaviour in a Difficult Institutional Environment.